U.S. HHS announces homelessness funding and procurement modernization

The U.S. Department of Health and Human Services (HHS) has announced several initiatives aimed at addressing homelessness and improving departmental efficiency. HHS is providing $42.3 million in supplemental funding to states and territories through two federal block grants. This funding supports a ‘treatment first’ approach to homelessness and addiction, following an executive order from President Trump. HHS Secretary Robert F. Kennedy Jr. stated the goal is to move individuals from crisis into treatment, recovery, and stable housing.

Additionally, HHS has launched the PACT procurement modernization initiative to build upon $16 billion in acquisition savings achieved during fiscal year 2025. The PACT program focuses on making these savings durable by establishing a Procurement Alignment and Collaboration Taskforce, expanding shared services, and modernizing acquisition technology. According to Assistant Secretary for Financial Resources Gustav Chiarello, the initiative aims to help the department ‘buy as one organization’ in alignment with federal mandates to eliminate waste and consolidate procurement.